HB 384

                SPONSOR:
                Rep. Berry & Sen. Walsh
                Rep. Morrison
        HOUSE OF REPRESENTATIVES
        153rd GENERAL ASSEMBLY
        HOUSE BILL NO. 384
        AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.
        BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
        Section 1. Amend § 6970, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
        § 6970. Open-end contract process for highway construction and reconstruction.
        (a)
        Legislative findings.  —
         The General Assembly finds that certain market conditions, including but not limited to a diminished number of available private contractors
        and/or
        and
         limits on competitive pricing opportunities for basic materials, can impede the State’s ability to complete its highway construction and reconstruction projects on a timely and useful schedule.
        Furthermore, the open-end contract process allows for faster implementation of certain projects.
        Under these circumstances, the General Assembly finds that the limited use of an open-end contract process for such work may enable the Department of Transportation
        (“Department”)
        to meet its capital improvement schedules despite these impediments.
        (b) Notwithstanding any portion of this chapter to the contrary, the Department
        of Transportation
         is hereby authorized to use an open-end contract process for highway construction and reconstruction projects, under the following terms and conditions:
        (1) As used herein, “open-end contract”
        (also known as “indefinite delivery” or “indefinite quantity” contracts)
        means a contract for highway construction and reconstruction work to be performed for a defined period of time, not to exceed
        3
        5
         years, in which the Department may designate 1 or more locations for highway construction and reconstruction projects to be completed during the contract period, and in which the payments for the work to be performed at such locations are calculated based on a unit price/item basis during the contract period.
        (2) The Department shall limit the use of this contract process to no more than 25% of its total authorized capital improvement budget for the applicable fiscal year or years, in order to provide adequate alternative contracting opportunities for those seeking to work on other Departmental highway construction and reconstruction projects.
        (3) The Department may award open-end contracts to more than 1 firm, for work anywhere within the State, as it deems necessary.
        (4)
        Bid bonds may be based on 10% of the expected maximum value of work to be in construction at any one time, as determined by the Department.
        (5)
        Performance bonds may be based on 100% of the expected maximum value of work to be in construction at any one time, as determined by the Department.
        (4)
        (6)
         In all other respects, the award and execution of open-end contracts shall be deemed to have complied with the provisions of this subchapter.
        SYNOPSIS
        This Act amends the Delaware Code to allow open-end contracts for highway construction or reconstruction for up to five (5) years.  This Act is intended to conform Delaware’s procurement statutes to the time limits permitted for contracts by the Federal Highway Administration (FHWA) and still ensure that adequate security is maintained to cover all bids and ongoing work.